Tenet Healthcare (THC): Reassessing Valuation Following a Robust Multi-Year Surge in Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 20 2025
0mins
Source: Yahoo Finance
Tenet Healthcare's Performance: Tenet Healthcare has shown strong performance in the healthcare sector, with a year-to-date share price increase of approximately 57% and a three-year total shareholder return exceeding 320%, indicating positive investor sentiment.
Valuation Insights: The stock is currently trading at a price-to-earnings ratio of 12.7, significantly lower than the peer average of 23.9, suggesting it may be undervalued and has potential for valuation expansion if market sentiment improves.
DCF Model Valuation: A discounted cash flow (DCF) analysis estimates Tenet's fair value at around $370.12, indicating a potential upside of 47% from its current price, highlighting concerns about reimbursement pressures and execution risks that may limit growth.
Investment Opportunities: Investors are encouraged to explore other undervalued stocks and opportunities in the healthcare sector, as well as to consider Tenet's key rewards and risks before making investment decisions.
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Analyst Views on THC
Wall Street analysts forecast THC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for THC is 241.36 USD with a low forecast of 224.00 USD and a high forecast of 260.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 189.490
Low
224.00
Averages
241.36
High
260.00
Current: 189.490
Low
224.00
Averages
241.36
High
260.00
About THC
Tenet Healthcare Corporation is a diversified healthcare services company. The Company's segments include Hospital Operations and Services (Hospital Operations) and Ambulatory Care. The Hospital Operations segment is comprised of its acute care and specialty hospitals, a network of employed physicians and ancillary outpatient facilities. The Company's subsidiaries operate approximately 49 hospitals serving primarily urban and suburban communities in eight states. The Hospital Operations segment also includes around 135 outpatient facilities, including urgent care centers, imaging centers, off-campus hospital emergency departments and micro hospitals. It also provides revenue cycle management and value based care services. The Ambulatory Care segment, through its USPI Holding Company, Inc. subsidiary, holds ownership interests in approximately 518 ambulatory surgery centers, and 25 surgical hospitals in 37 states. The Company operates a Global Business Center in the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Tenet Healthcare (THC) Projects 17.73% EPS Growth in Upcoming Earnings
- Stock Performance: Tenet Healthcare's shares closed at $200.60, rising 1.43% from the previous session, outperforming the S&P 500's slight decline of 0.03%, indicating market confidence in its short-term performance.
- Earnings Expectations: The upcoming earnings report is projected to show earnings per share (EPS) of $4.05, reflecting a 17.73% increase from the same quarter last year, suggesting an improvement in profitability that may attract more investor interest.
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